Intended as an overview of the nature and use of computers in schools, this document describes the history and development of computers generally and of computer-assisted instruction (CAI) specifically. Included is information on several CAI systems currently in operation including (1) Programmed Logic for Automatic Teaching Operations (PLATO), (2) Time-Shared Interactive Computer-Controlled Information Television (TICCIT), (3) the LOGO programing language for mathematics instruction, and (4) Program for Learning in Accordance with Needs (PLAN). Comments are also provided on current capabilities and future directions of both administrative data processing and CAI in American Schools. (DGC)